SAIC-VW to invest 2 billion euros to expand Skoda in China
Volkswagen signed an agreement with partner SAIC Motor Corp. to invest 2 billion euros (14.6 billion yuan) over the next five years to expand the product lineup of Skoda -- VW's value brand -- in China.
The partners' joint venture, SAIC Volkswagen Automotive Co., will use the funds to develop electric cars, provide connectivity to the Web and design new models for the Chinese market.
The partners, in a statement, said that by 2020 they aim to double Skoda's China sales, which totaled 281,700 vehicles last year.
Skoda currently offers six models in China. The infusion of money will help finance two additional models in the near future. A production version of the Skoda VisionS concept SUV will go on sale in China in the first half of 2017.
That vehicle, which was first displayed at the Geneva auto show, will be showcased next month at the Beijing auto show. Skoda also plans to develop a crossover for the China market, although the company did not offer details.
SAIC Volkswagen assembles Skoda vehicles in three assembly plants located in Nanjing, Yizheng and Ningbo. China currently generates 25 percent of Skoda's global sales -- enough to be the brand's biggest market.
The partners, in a statement, said that by 2020 they aim to double Skoda's China sales, which totaled 281,700 vehicles last year.
Skoda currently offers six models in China. The infusion of money will help finance two additional models in the near future. A production version of the Skoda VisionS concept SUV will go on sale in China in the first half of 2017.
That vehicle, which was first displayed at the Geneva auto show, will be showcased next month at the Beijing auto show. Skoda also plans to develop a crossover for the China market, although the company did not offer details.
SAIC Volkswagen assembles Skoda vehicles in three assembly plants located in Nanjing, Yizheng and Ningbo. China currently generates 25 percent of Skoda's global sales -- enough to be the brand's biggest market.
